Best zip codes to invest in property revealed

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America's housing market is booming with home prices nationwide now back to where they were a decade ago, just before the financial crisis

Property investors should head to Florida for the best returns on their cash according to a new analysis.

Online property investment management firm HomeUnion reveals that the Sunshine State is home to three of the top five zip codes for the best returns on home investments.

The analysis looks at 20 metros and assesses the attractiveness of investing in single-family rentals (SFRs) over 5 years. It also looks at the quality of schools in the area due to their impact on the housing market.

“Typically, SFRs in areas with good schools have been attractive to long-term investors, though those areas have been more challenging to locate for remote investors in today’s heated housing market,” explained Steve Hovland, director of research for HomeUnion.

Florida’s Hamptons at Boca Raton in the West Palm Beach tops the best-investment ranking, specifically the 33434 zip code, which offers an annualized total return of 8.1%, well above the 6.1% of the second-placed 19035 zip code of Gladwyne, Philadelphia.